Equity in 4th Year

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Rainbow

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Post by Rainbow » Mon Jun 04, 2007 5:38 pm
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Hi all

I have been reading a lot of the posts on the site and most seem to mention remortgaging in the 4th year - Currently Grant Thornton are drawing up the proposal but they have never mentioned this. But my question is this - We currently have a interest only mortgage and the endowments and savings that were being used to pay the mortgage off will have to be used for creditors now, but we also have a £50K secured loan on the property which when taken against our current value of the property together with the mortgage only leaves £7K equity. Even when the end of the IVA completes the secured loan will continue for another 8 years - How will we be able to remortgage with this secured loan still in place?

Thanks in advance
[8D]
Every Cloud has a silver lining. At the end of the Rainbow is a Pot of Gold - Or Hope!
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MelanieGiles

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Post by MelanieGiles » Mon Jun 04, 2007 5:52 pm
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Hi Rainbow

It may be possible for you to remortgage to pay off the secured loan as well. I am sure that your IP has thought of this, so if you are currently in negative equity as a result of the secured loan, then there may be little impact of any equity raising to be done in the first year. Have a chat with your IP to determine his strategy.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
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